Aspen Group has entered a conditional contract to acquire the remaining stages of the Wallaroo Shores master planned community in South Australia for $14.1 million, significantly boosting its development pipeline in a fast-growing region.
- Acquisition of 13.45-hectare Wallaroo Shores site for $14.1 million
- Project includes over 300 sites – lifestyle land lease, build-to-rent, townhouses, and commercial precinct
- Located in Copper Coast, a region with projected 90% population growth over 25 years
- Acquisition funded by debt with interest capitalised until income generation
- Aspen’s development pipeline grows to 16 projects with nearly 2,500 sites
Strategic Coastal Acquisition
Aspen Group (ASX – APZ) has announced a conditional contract to acquire the remaining stages of the Wallaroo Shores master planned community in South Australia for $14.1 million. This acquisition marks a significant expansion of Aspen’s footprint in the residential property development sector, particularly in a region poised for substantial demographic growth.
The 13.45-hectare site is situated in Wallaroo, a picturesque coastal town on the Yorke Peninsula’s Copper Coast. This area is notable for its rapid population growth, driven largely by retiree migration, with projections estimating a near doubling of residents to over 30,000 within 25 years. Its proximity to Adelaide, just two hours’ drive, adds to its appeal as a lifestyle and residential hub.
Diverse Development Pipeline
The masterplan Aspen has agreed upon with the Copper Coast Council envisions a mixed-use community comprising more than 300 sites. These include 200 lifestyle land lease sites, residential build-to-rent units, townhouses, and residential land lots, alongside a commercial and retail precinct. This diversity reflects Aspen’s strategy to cater to varied customer segments, from retirees seeking lifestyle communities to renters and homeowners.
Importantly, the site benefits from approximately $8 million already invested in infrastructure, including Liberator Way, which connects the development to Wallaroo’s town centre. Aspen will pursue formal development approvals following settlement, a critical next step before construction can commence.
Financial and Market Implications
The purchase price translates to roughly $1.1 million per hectare or about $50,000 per proposed dwelling or site, a figure that appears competitive given the location and infrastructure in place. Aspen plans to fund the acquisition through debt, with interest costs capitalised until the project begins generating income. This approach will temporarily increase leverage but aligns with typical development financing models.
With this deal, Aspen’s development pipeline expands to 16 projects encompassing close to 2,500 sites. This scale and diversification across lifestyle land lease, build-to-rent, and residential land segments position Aspen well to capture growth in multiple market niches, particularly in regions with strong demographic tailwinds.
While the contract remains conditional and subject to settlement and development approvals, the acquisition signals Aspen’s confidence in the Copper Coast’s long-term prospects and its commitment to expanding its presence in high-growth regional markets.
Bottom Line?
Aspen’s Wallaroo Shores acquisition underscores its strategic push into growth corridors, but execution risks remain as approvals and settlement loom.
Questions in the middle?
- When does Aspen expect to secure formal development approvals and commence construction?
- What are the detailed terms and impact of the debt financing on Aspen’s balance sheet?
- How will Aspen’s diversified project pipeline perform amid evolving market conditions and demographic shifts?